James Watt, co-founder of BrewDog, is preparing a takeover bid backed by private equity that would inject £10 million of his own money and preserve a stake for retail investors as second-round offers for the struggling brewer close this weekend.

Sky News reported on Saturday that Watt, who stepped down as chief executive in 2024, has told prospective partners he will commit £10 million of his personal wealth as part of a consortium seeking to acquire the group’s bars, brands and brewing operations in their entirety. Advisers at AlixPartners are overseeing a structured sale process, with final bids understood to be due imminently.

The Sunday Times reported that proposals discussed would allow about a fifth of the shares currently owned by retail investors to be rolled over into the new structure, with Watt holding roughly half the company and his backers the remainder. The plan is said to include retaining some pubs and the manufacturing base in Ellon, Scotland, which employs hundreds of staff.

More than 200,000 small investors backed BrewDog through its “Equity for Punks” crowdfunding drives, which raised over £75 million across seven rounds since 2009. Investors typically committed around £400 in return for discounts and access to shareholder events, but fears have grown that they could be wiped out in a break-up.

Writing in The Telegraph, Ed Doljanin, a 21-year-old shareholder who invested £350, said: “When I saw the most recent reports about a potential sale, I started wondering whether I’d get anything back.” He added that “it feels like a money grab” and argued Watt should share proceeds with smaller investors.

The sale follows five consecutive years of losses, including a £37 million pre-tax loss in 2024 on revenues of £357 million, according to company filings. BrewDog operates 72 bars globally, employs about 1,400 people and holds roughly 4 per cent of the UK off-trade grocery market by value.

HSBC has secured its lending against BrewDog’s flagship Ellon brewery, according to filings cited by The Telegraph, giving the bank rights over the site if the company falls into administration. The brewer has about £92 million in outstanding bank loans, with £25 million due within six months.

BrewDog said in a statement that appointing AlixPartners was a “deliberate and disciplined step” and that it believed the process “will attract substantial interest”, adding that it remained fully committed to its customers, staff and shareholders.

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